ITR Filing for Freelancers: Step-by-Step Guide for AY 2026-27
Complete guide to filing Income Tax Return as a freelancer - which ITR form to use, documents needed, step-by-step process, and common mistakes to avoid.
ITR Filing Deadline for AY 2026-27
July 31, 2026 - Last date for non-audit cases
Late filing attracts penalty up to ₹5,000 and you lose the option to carry forward losses.
📑 Table of Contents
1. Which ITR Form Should Freelancers Use?
As a freelancer, you'll typically use either ITR-3 or ITR-4. Here's how to decide:
ITR-4 (Sugam)
For freelancers using presumptive taxation
- ✓ Using Section 44ADA
- ✓ Gross receipts ≤ ₹75 lakh
- ✓ No capital gains
- ✓ No foreign income
- ✓ Simpler form, fewer details
ITR-3
For freelancers with regular accounting
- ✓ Not using 44ADA
- ✓ Gross receipts > ₹75 lakh
- ✓ Have capital gains
- ✓ Have foreign income
- ✓ Want to claim actual expenses
Recommendation for Most Freelancers
If your gross receipts are below ₹75 lakh, use ITR-4 with Section 44ADA. It's simpler, requires no books of accounts, and you pay tax on only 50% of your income.
2. ITR-3 vs ITR-4: Detailed Comparison
| Feature | ITR-4 | ITR-3 |
|---|---|---|
| Presumptive Income (44ADA) | ✓ Yes | ✗ No |
| Books of Accounts Required | ✗ Not required | ✓ Required |
| Audit Required | ✗ Not required | Only if turnover > ₹1 Cr |
| Capital Gains Reporting | ✗ Not allowed | ✓ Allowed |
| Foreign Income | ✗ Not allowed | ✓ Allowed |
| Complexity | Simple | Complex |
3. Documents Needed for ITR Filing
Essential Documents
- PAN Card - Your unique tax identifier
- Aadhaar Card - For e-verification
- Form 26AS - TDS statement (download from IT portal)
- AIS (Annual Information Statement) - All financial transactions
- Bank Statements - All accounts used for freelancing
Income Proof
- Invoices - All invoices raised during the year
- Payment Receipts - From clients (PayPal, Wise, bank transfers)
- Platform Earnings - Upwork, Fiverr, Toptal statements
For Deductions (Old Regime)
- 80C Proof - LIC, PPF, ELSS, tuition fees receipts
- 80D Proof - Health insurance premium receipts
- Home Loan Certificate - Interest certificate from bank
4. Step-by-Step ITR Filing Process
Login to Income Tax Portal
Go to incometax.gov.in and login with your PAN and password.
Download Form 26AS & AIS
Go to e-File → Income Tax Returns → View Form 26AS and Annual Information Statement. Verify all TDS entries.
Start Filing ITR
Go to e-File → Income Tax Returns → File Income Tax Return. Select Assessment Year 2026-27, Filing Type (Original/Revised), and ITR Form (ITR-4 for most freelancers).
Fill Personal Information
Verify pre-filled details - Name, PAN, Aadhaar, Address, Bank Account. Add any missing bank accounts.
Enter Income Details
For ITR-4: Enter gross receipts under "Business/Profession" → Select 44ADA → System auto-calculates 50% as taxable income.
Verify TDS & Advance Tax
Check that TDS from Form 26AS is pre-filled. Add any advance tax paid with challan details.
Calculate & Pay Tax (if any)
If tax is due, pay via e-Pay Tax before submitting. If refund is due, verify bank account for credit.
Preview & Submit
Review all details in the preview. Submit and note down the Acknowledgement Number.
e-Verify Within 30 Days
e-Verify using Aadhaar OTP, Net Banking, or DSC. Without verification, your ITR is invalid!
5. Common Mistakes to Avoid
Mistake #1: Not Matching Form 26AS
Always verify that income reported matches Form 26AS. Mismatch triggers scrutiny notice.
Mistake #2: Wrong ITR Form
Using ITR-1 instead of ITR-4 for freelance income. ITR-1 is only for salaried individuals.
Mistake #3: Forgetting to e-Verify
ITR without e-verification within 30 days is treated as never filed. Set a reminder!
Mistake #4: Not Reporting All Income
Include ALL income - Indian clients, foreign clients, interest, dividends. AIS tracks everything.
Mistake #5: Wrong Bank Account for Refund
Ensure the bank account for refund is pre-validated and linked to PAN. Wrong account = delayed refund.
6. What to Do After Filing ITR
- Download ITR-V - Keep the acknowledgement for your records
- e-Verify Immediately - Don't wait for the 30-day deadline
- Track Refund Status - Check on IT portal under "View Refund Status"
- Respond to Notices - If you get any notice, respond within the deadline
- File Revised Return - If you made mistakes, file revised ITR before Dec 31
Track Your Income Year-Round
GigBooks automatically tracks your freelance income, calculates taxes, and generates reports for easy ITR filing.